Why is it that when we need something the most it’s no longer available to us? When you’re a bit down on your luck, it’s always a lot harder to borrow money. Don’t despair as you can still get approved for quick cash loans when on benefits, even if you have a bad credit history.

You may as well forget turning to the banks as they credit score applicants and will reject you. They’re happy to lend you money when you don’t need it, but not when your circumstances deteriorate. Instant loans for people on benefits remain widely available from dedicated adverse credit lender.

Types of Instant Loans when on Benefits

Doorstep loans: Not to be confused with a loan shark, doorstep lenders are legitimate businesses that offer instant loans for people on benefits. You’ll need to demonstrate that the repayments are affordable, but being out of work, jobless or unemployed is not an issue. Neither is a bad credit history.

Family loans: You can avoid usury interest by borrowing money from a member of your family. Provided that they aren’t also in difficulty, it doesn’t hurt to ask if they’re prepared to help you. You’ll benefit from a very low rate of interest and be able to spread the cost of repayment.

Pawnbroker loans: Pawn shops offer same day cash loans when on state benefits. There are no credit checks, but you’ll be expected to provide collateral (gold, jewellery or electrical equipment). You’ll normally receive your payment in cash within just minutes.

What is the Cost of Instant Loans for People on Benefits?

Although rates can and do vary, you’ll discover that loans when on benefits aren’t a cheap option. Despite providing collateral, a loan from a pawn shop normally costs in the region of 20% to 25% per month. You should check the rates with several different lenders before signing-up.

The rates charged by doorstep lenders vary considerably based on the amount and duration. A £50 loan for the unemployed from Provident Personal Credit for the minimum term of 14 weeks has an APR of 1068.5%. However, a £500 quick cash advance over 52-weeks has an APR of “just” 272.2%.

Extending the duration of loans for people on benefits with bad credit is far more expensive. It may reduce the monthly repayments, but the amount of cumulative interest paid rises steeply. Keep the term as short as you can manage as you can always extend it later on.

Dangers of Fast Cash Loans for People on Benefits with Bad Credit

Same day loans when on benefits can help you pay a surprise bill or meet urgent expenses, but they do hold a few potential perils. Once you’ve repaid the principal and any interest that has accrued, you’re going to be left with less money in future months.

Although instant loans for people on benefits is one way of negotiating your financial difficulties, there are other options. Don’t borrow money if you have no hope of ever repaying it. If you haven’t already explored this option, you should seek advice from a free credit counseling service.

Never Before Has Finding a Great Deal on a Car Loan Been Easier

Borrowing wisely can aid you in accomplishing goals you would otherwise be unable to attain, like owning a home or getting an education or getting a car loan. But credit scores can also get you into trouble at any time you are not conscious of its potential dangers. Allow me to share an example drawn from real life, along with tips on how to make sure they don’t happen to you. Your credit is a precious thing you can not afford to let deteriorate.

Beware of Scam Artists
Consumer Bobby received a call from the man who found himself as a member from the anti-fraud department of his credit card issuer. “Did you recently are purchasing an item from XYZ for $450?” the person asked. When Bobby said no, the caller continued: “That’s what we thought. This company is currently under investigation for fraud. We’ll process a refund immediately, but I have to verify the three-digit code on the rear of the card.” Bobby read the three digits, and the caller confirmed it by reading back to him. A week later, Bobby received his statement inside the mail. It included a brand-new charge for $450.

Bobby was the victim of the scam designed to trick people into revealing the verification code on their credit report score card. Most merchants cannot procedure transactions unless you provide this three-digit total, which ensures you have the credit card in your possession. To shield yourself, never reveal your credit report score card data to someone who calls to request it, either way story they feed you. Traditional legitimate credit card lenders don’t do this with their customers, if you suspect foul play, hang up and call your credit score card issuer back to check the call. Same goes for your finance company account — never reveal your account details or PIN figure. If you think you have been scammed, call you card issuer or lender immediately to report it.

Get Help
If you think you are a victim of fraud or are already feeling over your head in debt? Speak with a credit counselor or financial planner who can walk you through some options for regaining control of the assets, including a debt consolidation loan. Make sure to contact your lender immediately if you suspect any wrong doing. They can assist in the process and help you get to the bottom of the problem. Remember, they have an interest in protecting your credit as well.